STATES BANKRUPT

Hokitika Guardian, 3 November 1931, Page 3

STATES BANKRUPT

TWO IN U.S.A. (United Press Association.—By Electru ? Telegraph.—Copyright.] 1 ... NEW YORK, Octoebr 31. Despatches* from Nashville and Mont'X, gomery .indicate that the States jot . Tennessee and Alabama are seriously embarrassed financially. No October v salaries have been paid to officials,

from the Governor to the Justices of ■ - the' Supreme Court of Tennessee. No *" • salaries have been paid to the teachers cv - : -- ; in°six of the normal schools for six ' months': Many of the country schools are now closed. One million dollars in State obligation's are unpaid; as the Treasury i c without funds. 1 The.Alabaifia Treasurer; to-day sent out • 285,000 dollai’s warrants to pay' "the State employees for October, but he added a warning that these must .jot be-cashed, as 7 there are, np funds. A The failure of banks in which the State funds ar e lodged, and trade depression are responsible for these conditions iniboth States.

LABOUR BANIK, SUSPENDS. i . V NEW XORK, October 30. The Federation Bank Trust Coy., one pf ;i the biggest Labour Banks in the country' with deposits of ... 15,630,000 dollars closed to-day. •/ •. i ANOTHER BANK. SUSPENDS. . IHTW YORK, October 31. ,A Columbus (Ohio) message states the Union Trust Company of Dayton, with resources of thirty-one million dollars, closed to-day, because of the v assets being frozen and of heavy withdrawals. > I